Lenders shine light at the end of the tunnel

2012 has brought with it more positive noises coming from lenders that are showing willingness to relax lending and for those who can access credit there are some of the lowest rates since records began currently on offer. With house prices at their most affordable level in years there is the motive to buy and now with cheaper more readily available credit at lower rates there is the ability for many to be in a position to Buy a House. 

There is currently an opportunity for developers to take advantage of available credit as many investors are in the market for off plan property to flip and sell on or let out then eventually sell. The greatest beneficiary demographic is that of first time buyers as they are not reliant upon the need to Sell a House in order to make a purchase. It is still somewhat harder for first time buyers to gain access to the best deal on offer due to the require deposit, however, we are seeing signs of reductions in deposits also. There has been a surge in the number of mortgage applications recently although the market for sellers is still very tough if you need to achieve a certain price for your property. The looming threats to the market are still there to be seen, however, with the on going Eurozone crisis the market is still in a fragile state and could easily take a downward spiral. 

Banks still face a tough test 

With news released in recent press that RBS and Lloyds were facing potential new losses to the sum of £33bn , which would again meaning the two banks (having previously being bailed out by the tax payer) may face writing down corporate debt, mortgages and consumer loans. These new projections are in addition to the £100bn in impairments the banks were hit with following the previous bailout in 2008. Along with many countries now being downgraded so are financial institutions such as Northern Rock following to the takeover by Virgin. This is amidst fears that the bank will require further taxpayer support, and it is hoped that RBS and Lloyds do not face similar futures, however there is a very probable risk that further capital injections will be required for all of the banks facing losses.